Pump.Fun's Buyback Program Drives 30% PUMP Token Rally

Pump.Fun, a Solana-based memecoin launchpad, has initiated an aggressive buyback program for its native token, PUMP. This move has significantly boosted the token's bullish outlook, leading to a nearly 30% rally. The buyback program has already deployed $19.2 million to purchase 3.196 billion PUMP tokens, as reported by blockchain analytics platform Spot On Chain. This deflationary plan has not only stabilized the token's value but also attracted renewed retail interest.

The platform had previously set aside $30.53 million for its buyback program, signaling a shift in sentiment post-ICO. In the past, accrued fees were offloaded via Kraken, with over 4.1 million SOL (over $740M) cashed out since May 2024. This cash-out was widely criticized as 'extractive' by the crypto community. However, the successful ICO on July 12, which raised $600 million in under 15 minutes, changed the market mood. The overall sentiment post-ICO appeared bullish, with the buyback program acting as one of the catalysts.

On the Hyperliquid DEX, which dominated PUMP’s spot and derivatives market in terms of volume, the token registered only a 13% dump before rallying nearly 30% afterwards. The initial drop was expected as some ICO buyers offloaded their tokens when spot PUMP trading went live. However, the dump eased at $0.005, about a 30% premium to the ICO price of $0.004, ensuring that initial buyers remained profitable. With the buyback program, PUMP quickly recovered 30% and reached $0.0068, as of press time. This recovery indicates that the pre-ICO bearish sentiment across the crypto community was overblown, and those who placed a contrarian bet against it would have made gains from PUMP.

Crypto market analyst Stacy Muur suggested that the crypto community's 'hatred' of PUMP may be linked to the platform's remarkable success. The token has attracted renewed retail interest, with the number of holders surging 3x from 10K to 33K active addresses in the past two days. Those with 10K PUMP and below were the highest, suggesting strong retail interest. If the trend continues, including the buyback program, PUMP could see further gains as the pre-ICO bearish drag has waned significantly.